Business / Financial Markets | CURRENCY MARKET

Dollar weaker around ¥106.50 in Tokyo

JIJI

The dollar gave up its early gains to slip to around ¥106.50 in Tokyo trading Monday, dampened chiefly by a decline in U.S. long-term interest rates.

At 5 p.m., the dollar stood at ¥106.55-55, down from ¥107.01-02 at the same time Friday. The euro was at $1.2324-2324, up from $1.2294-2294, and at ¥131.31-31, down from ¥131.58-58.

The dollar rose above ¥107.20 in early trading thanks to buybacks. This followed the news that a senior North Korean official told South Korean President Moon Jae-in on Sunday that Pyongyang is willing to hold talks with the United States, a foreign exchange broker said.

But the dollar soon lost ground due to a drop in U.S. long-term interest rates in off-hours trading and selling by Japanese exporters, market sources said.

The dollar was also weighed down versus the yen by dollar sales to buy the euro and the yuan, the sources added.

“Market participants are finding it difficult to make major moves” ahead of new U.S. Federal Reserve Chairman Jerome Powell’s first congressional testimony on Tuesday, an official at a major Japanese bank said.